Money-saving scheme cost taxpayers £4m

An attempt to save money by making government departments share back-office services ended up costing the taxpayer £4 million, the Commons spending watchdog has said.

Government officials had hoped to save £400 million a year by asking departments to use a common supplier for their human resources, payroll and accounts services.

However, the scheme has cost £94 million and saved only £90 million, according to the Commons public accounts committee.

The cross-party committee said that there were “ongoing failures of leading and governance” that needed to be fixed in order to deliver significant savings. Meg Hillier, the Labour chairwoman of the PAC, said: “Each department was able to request multiple changes which led to big cost increases.”

The Cabinet Office said issues with the programme were being addressed.

You might also like

No Responses

Write a response

About Me

A Warm Welcome on Our Blog! We are a happy family of 4 and would like to share our experience on building a strong family, raising happy and healthy kids and turning our house into a clean, safe and cozy place we live in! Hope our posts will help you and your family become as happy as we are. Subscribe to the newsletters to join our happy parenting community!